Rhode Island Issues Ruling Regarding Taxability of Entertainment Services

Rhode Island has issued a declaratory ruling regarding the taxability of entertainment services in response to a company’s request for ruling.

Colorado Localities Change to State-Administered Sales Taxes

Two Colorado localities, Town of Carbondale and City of Edgewater, made the switch from self-administered to state-administered for sales tax effective January 1, 2024.

Mississippi Supreme Court Rules Online Travel Companies are Not Liable for Hotel Tax

Mississippi released Priceline and their co-plaintiffs from hotel taxes previously levied by a lower court in Mississippi.

Washington Releases Guidance for Calculating Tax Due on Meals Provided by Senior Living Communities

Effective July 23, 2023, Washington state has revised its tax rules regarding meals provided to residents of senior living communities.

New Short-Term Rental Permits Banned in New Orleans

New short-term rental (STR) permits in New Orleans, Louisiana, are banned for one year in areas of the city zoned for commercial use.

Louisiana City Cannot Charge Franchise Fees on Streaming Services

The City of Kenner, Louisiana, cannot sue Netflix and Hulu for franchise fees for providing video content via the Internet.

Large Hotels in Oklahoma Are No Longer Taxed as Marketplace Facilitators

Oklahoma H.B. 2335 shifts the sales tax burden from marketplace facilitators to marketplace seller’s for hotels and motels with more than 12 rooms.

California Restaurant Must Pay Sales Tax for Online Orders

The California Office of Tax Appeals (OTA) determined that the owner of a California restaurant owes sales tax on orders made through delivery websites.

D.C. Provides Guidance on Taxability of Mandatory Service Charges

Initiative 82 – passed by District of Columbia voters in November 2022 – eliminated the tipped minimum wage for servers, bartenders and tipped workers. To reach D.C.’s minimum wage, the difference is made up with gratuities, whether voluntarily given by…

Illinois Issues Guidance on Taxability of Sporting Event Ticket Sales

The Illinois Department of Revenue (DOR) issued a General Information Letter (GIL) providing guidance on the taxability of sporting event ticket sales.

Arizona DOR Releases TPT Guidance for Short Term Rentals

Income from short term rentals- stays of less than 30 days- is subject to the Arizona Transaction Privilege Tax (TPT) under Arizona Revised Statutes section 42-5070 and the Model City Tax Code -444 and -447.

Missouri Issues Letter Ruling on Taxability of Utilities Sold to Hotels

The Missouri Department of Revenue (DOR) issued a letter ruling stating that a utility company should not charge sales tax to hotels, motels and other transient accommodation establishments for sales of utilities.

New Mexico Releases Guidance for Application of Gross Receipts Tax to Lodging Marketplaces

A recent New Mexico bulletin advises taxpayers about the gross receipts tax responsibility of marketplace providers that list and book third party lodging and accommodations.

Wyoming Issues Updated Guidance on Online Travel Companies and Lodging Services

The Wyoming Department of Revenue (DOR) has issued updated guidance on the taxability of lodging services and online travel companies (OTCs).

DC Short-Term Rental Law Goes Into Effect

The District of Columbia’s law regarding short-term rental hosts that was passed in 2018 is now going into effect.

Louisiana Online Travel Companies Not Responsible for Taxes on Hotel Bookings

The Louisiana Court of Appeals determined that online travel companies do not owe local sales tax on the fees they charge to their customers.

Texas Determines the Sales and Use Tax Treatment of a Mobile Ordering Application Platform

In a private letter ruling, the Texas Comptroller clarified the sales and use tax requirements for a mobile ordering application platform where restaurants receive food orders.

Connecticut Provides Sales Tax Relief for Meal Sellers

Connecticut has enacted legislation allowing sellers of meals to retain the sales tax they collect on meal sales for a specified period.

Hotel Rooms Booked through Marketplace Facilitators are Subject to West Virginia Hotel Occupancy Tax

Effective January 1, 2022, where a hotel or hotel operator contracts with a marketplace facilitator to offer hotel rooms, the marketplace facilitator is responsible to collect and remit tax when it meets the state’s economic nexus requirements.

Rental Cars Used in Chicago – A Personal Property Lease Transaction Tax Saga

The Illinois Supreme Court held that the City of Chicago’s ruling to require rental car companies located within three miles of the City to collect tax is unconstitutional under the home rule article of the Illinois Constitution.

Arizona Adopts Rule Amending Treatment of Gratuities for TPT

Arizona has amended the treatment of gratuities for TPT purposes.

Membership Fees Not Taxable as Lump-Sum Admission Fees in Alabama

A taxpayer’s charges for annual and family memberships constituted exempt membership dues and not taxable lump-sum admissions fees in Alabama.

Virginia Department of Taxation Provides Guidance on New Vehicle Sharing Tax

Peer-to-peer (PTP) vehicle sharing platforms will be obligated to collect the tax on behalf of the owners if it meets the marketplace facilitator thresholds in Virginia ($100,000 in annual revenue or 200 transactions)

Electronic Gaming Devices Properly Taxed as Games of Entertainment in Maryland

Maryland held that electronic gaming devices were properly characterized as games of entertainment for purposes of being assessed Admissions and Amusement (A&A) Taxes.